This is the effect on encryption
The American Federal Reserve recently announced the first policy decision of 2025 after the Federal Open Market Committee meeting for two days (FOMC). According to the last press statement, the Federal Open Market Committee decided to maintain interest rates in its current range of 4.25 % to 4.5 %. This decision follows after the committee reduced prices three times in a row last year.
Discounts in the federal reserve category despite Trump’s call
As expected, federal reserve officials decided not to change interest rates after their two -day meeting, the first during the reign of President Trump II. They took this choice even though President Trump drives them to cut prices.
At their meeting in December, US Federal Reserve officials voted from 11 to 1 to reduce the main interest rate by 0.25 % to a range between 4.25-4.50 %, just as Wall Street expected. This represents the third -federal reserve rate reduction in 2024 and track another 0.25 % reduction in November.
The committee led by the head of the US Federal Reserve, Jerome Powell, expects to make interest rates or only two in 2025. This decision comes after recent reports showed that consumer prices are still somewhat high in the United States.
After increasing the policy rate by 5.25 percentage points since March 2022 to treat the worst inflation in 40 years, the Federal Reserve has kept a fixed rate since July 2023. This stop aims to stabilize high inflation and gradually reduce it to the target range of 2 %.
The encryption market is still stable
The encryption market remained somewhat stable because it has already expected a decision not to change interest rates. Federal Reserve Chairman Jerome Powell previously stated that the committee is not accelerating to reduce the main standard interest rates and will continue with greater caution with any price cuts.
The data from Coinmarketca shows that bitcoin price has decreased slightly in the last minutes. The BTC price fell from the peak of 102.9 thousand dollars to the lowest level at 101.7 thousand dollars.
The Crypto Market will turn into the next FOMC meeting and comments from Powell on discounts in future prices. Any unexpected developments or surprises are likely to be the main engines for Bitcoin.
President Donald Trump continues, through his pledge in his campaign to remove illegal immigrants from the United States, and began deporting trips during the weekend. It is estimated that the total number of deportations can range between one million and 10 million.
Analysts believe that widespread deposits can enhance the labor market and lead to an increase
In addition, Trump threatened to impose import fees of 25 % on goods from Mexico and Canada starting on Saturday. Most economists believe that these measures are likely to increase inflation rather than help reduce it.
Although the president does not control the decisions of the Federal Reserve Policy, he and his chairman at the Federal Reserve Jerome Powell had clashed on politics since the first time of Trump’s state in office. Only last week, Trump stated that he “will demand an immediate decrease in interest rates.”
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